Maker Relay Ep 46

Hi everyone, thanks for checking out Maker Relay! Whether you hold MKR or DAI, own a vault, or want to get more involved in MakerDAO governance, this is your one-stop shop for MakerDAO updates.


Executive Votes

May MIPs Bundle
This vote will expire if not passed by May 27, 2021, at 16:00 UTC.
If passed, the following MIPs and Subproposals will be officially accepted:

Governance Polls

The weekly polls will close on May 27, 2021, at 16:00 UTC.

Poll Name Vote Discussion
Whitelist B.Protocol on WBTCUSD Oracle (MIP10c9-SP27 and MIP10c9-SP28) Vote Discussion

Community Greenlight Polls

The greenlight polls will close on May 31, 2021, at 16:00 UTC.

Collateral MIP9 Poll MIP6 Application
CEL (Celsius Network Token) Vote Application
PA-DROP (PandaCredit DROP Token) Vote Application
SLP-SNX-ETH (Sushiswap SNX-ETH LP Token) Vote Application
SLP-UNI-ETH (Sushiswap UNI-ETH LP Token) Vote Application
SLP-YFI-ETH (Sushiswap YFI-ETH LP Token) Vote Application
SLP-AAVE-ETH (Sushiswap AAVE-ETH LP Token) Vote Application
SLP-COMP-ETH (Sushiswap COMP-ETH LP Token) Vote Application
SLP-ETH-USDT (Sushiswap ETH-USDT LP Token) Vote Application
SLP-LINK-ETH (Sushiswap LINK-ETH LP Token) Vote Application
SLP-USDC-ETH (Sushiswap USDC-ETH LP Token) Vote Application
SLP-WBTC-ETH (Sushiswap WBTC-ETH LP Token) Vote Application
SLP-SUSHI-ETH (Sushiswap SUSHI-ETH LP Token) Vote Application

Check out an ‘at-a-glance’ view of the current Vault types and their parameters on MakerBurn

Active Signal Requests

[Urgent] Adjustments to tip & PSM-USDC-A DC
Tip is a flat fee incentive for keepers when triggering or resetting an auction. This is signaling for support of a tip value of 300 DAI, as well as a potential increase in the Debt Ceiling for PSM-USDC-A.

New vault-type for YFI with a higher LR
Following discussion from Nadia and the growth core unit, this is signaling for support of a YFI vault type with a higher liquidation ratio and a lower stability fee. The idea behind this is to create a vault for Yearn specifically to use with currently undecided parameters.

Reduce the USDC PSM tout to 0
We have ~800M USDC currently sitting in the PSM, which creates a lot of systemic risk. This signal is seeking quorum on whether the tout should be reduced to 0 to encourage actors to more quickly arbitrage this USDC for DAI. By reducing the spread between tin and tout, arbitrageurs can more easily profit when DAI<USDC which will reduce the amount of USDC on our books.

Last Week

Parameter Changes and Oracle Updates
Passed on May 23, 2021, 13:05 UTC.
Available for execution on May 25, 2021, 13:05 UTC.

  • The Stability Fee for KNC-A will be increased from 2.0% to 5.0%
  • The Stability Fee for TUSD-A and PAXUSD-A will be increased from 0.0% to 1.0%.
  • The Stability Fee for ETH-C will be decreased from 3.5% to 3.0%.
  • The Debt Ceiling for KNC-A, PAXUSD-A, and USDC-B will be set to 0.
  • The Uniswap LP Token Oracle will be replaced with an upgraded version based on recent audit results.



Weekly MIPS Update #37

New Submission Highlight

Oracles Core Unit, ORA-001


  • Building documentation platform for a broader audience.
  • Working on MIPs Portal adding views and menus.
  • Collaborating with SourceCred to make the distributions more trustless and automatic.
  • @Elihu has been tinkering with the forum top-level category changes and making it more pleasant.

Protocol Engineering

  • Reviewed the delegated voting contract and the flash mint module.
    • Could be ready by mid to late June, but the dependencies are front-end integration and edge cases.
    • There’s a small edge case; the contract needs to account for time expiration.
  • Had an L2 strategy meeting.
  • Tabling the Keg for a little bit, might be utilizing something similar to DssVest for payments to teams in the interim.
  • Will be talking about Stablecoins and how we will be porting those over into Liq 2.0.
  • Safe to say Liq 2.0 was a wild success. :tada:


  • Oracles did considerably better with the heavy market volatility last week than we did on Black Thursday.
  • High volatility made for many Oracle alerts, as they were updating every few minutes due to price movements outside the updated band.
  • Last Wednesday’s gwei prices hit 3500, highlighting the difficulty in predicting Oracle costs for the DAO.
  • Working on the way to model Oracle Expenses, figure out an expected range of costs for keeping a collateral type open compared to the fees they generate.

Real-World Finance

  • Nearly 1.3M DAI coming from New Silver
  • Shooting for an executive on June 11th with options for further RWAs.
  • Finishing review of 6s Legal Documents.
  • First RWA Committee Meeting occurred this week.


  • Proposed Parameters for Uni-LPs in Liquidations 2.0.
  • Looking at stable coins and the possibility of adding PSMs.
  • Risk Dashboard Road-map in the forum, check out the product here.
  • Liquidation 2.0 did well from a Risk perspective.
  • Might need to evaluate dust limit again
    • Incentives (like tip) do not cover the cost for small vaults, have to be careful of gaming


  • Weekly Update
  • Looking into DAI use on other chains.
  • Exploring “special use” vaults for bigger customers (like YFI).
  • Will be putting up a post to explore promoting the ability to buy MKR on more exchanges.

Operations and Collateral Onboarding

Current Events

Recent Executive Votes

@LongForWisdom announced today that there would be some adjustments with the scheduled Executive Votes. Due to the delay in passing the update for the Uniswap LP Oracles, last Friday’s scheduled executive has been pushed back a week to allow for the Monthly Governance Bundle to take place on its scheduled day.

Liquidation Performance

Call it a stress test? Last Wednesday, the protocol weathered wave after wave of liquidations caused by market turmoil. The results: outstanding. @Primoz gave a presentation on last week’s Governance and Risk call detailing the performance of the new liquidations 2.0 system. Many community members followed along this week on the Risk Dashboard. The data suggest a few minor tweaks might help the protocol, resulting in a special signal request from the Risk Team.

Assets, in the Real World

The latest risk evaluation from the Real-World Finance Team hit the forums this week generating plenty of excitement. William Remor of the RWF Core Unit will be holding an AMA session to detail further what the RWF Team does and the benefits they believe exist for MakerDAO. There was also some significant progress on the 6s Trust model bringing plenty of potential deals down the Real World Assets pipeline. A new newsletter hit the forums from @traderjolle, focusing on RWA.

A New LP on the Block

Collateral Evaluations have hit the forum for Sushiswap LP pairs! You can read up on the reports for the WBTC<>ETH, USDC<>ETH, and DAI<>ETH pairs. Onboarding Sushi pairs required work on the CropJoin Adapter, SushiJoin to ensure participants could benefit from Sushi Rewards.

State of the Peg

  • DAI peg rock solid except for some wobbling on the 19th. Watching one trillion dollars wiping from the markets made everyone uneasy, even :robot:.
  • Volume peaked at 2.9 billion on May 19. :exploding_head:

  • More insights into DAI price courtesy of

  • Supply and TVL took a haircut. Sitting at 4.4 billion as of writing.

  • Sushi, Uni, Binance, and Coinbase topping the volume. Honorable mentions to Quickswap.

  • Half a billion hit Curve on the 19th.

  • Makerburn put up the monthly stats for liquidations lightning fast.

  • ETH-A 1.8 billion
    • WBTC 330 million
    • PSM USDC 1.4 billion
    • USDC-A 240 million
    • ETH-C 207 million
    • PAX 68 million
    • ETH-B 46 million
    • LINK 28 million
    • YFI 34 million
    • TUSD 26 million
    • UniV2DaiEth 19.3 million
    • UniV2UsdcEth 13.1 million
    • UniV2UniEth 9.2 million
    • UNI 7.2 million
    • UniV2WBTCEth 6 million
    • UniV2DaiUSDC 3.4 million
    • renBTC 3.2 million
    • AAVE 1.9 million
    • MANA 1.8 million
    • BAT 1.6 million
    • ZRX 1.3 million
    • NSDROP 1.2 Million
    • LRC 720K
    • BAL 513K
  • Other vaults below 500K (GUSD, KNC<>USDT, UniV2LINKETH UniV2AAVEETH, UniV2WbtcDai, UniV2DaiUsdt, UniV2EthUsdt, COMP) at 1.3 million.

  • Even though we’d like to avoid liquidations talk, ETH is skirting the line a bit in a small drawdown. Everyone go up them collateralization ratios. Please…the capybara can only take so much pain.

  • ETH-B vaults collateralization ratio illuminates the risk. The largest vault is at 135%.

  • Getting even more specific, the liquidation wall hits at $2483. |



Maker Forum Deep Dai-ve

Check out the latest Forum at a Glance

Tweet of the Week

Meetings and Events

This Week’s Calls

Core Unit Office Hours

  • Join Link | GovAlpha - Mondays 17:00 UTC
  • Join Link | Protocol Engineering - Tuesdays 15:00 UTC
  • Join Link | Content Production - Wednesdays 16:00 UTC

Core Unit Launch Pod Session #10: Collateral Onboarding Core Unit

Governance & Risk

Last Week’s Call Recordings

Governance and Risk Call #142
Video | Forum Post

SES Weekly Status Update: Incubation CU & Recruitment Group Calls
Video | Notes

Core Unit Pod Sessions #9 - GovAlpha Facilitator Onboarding
Video | Forum Post

Useful Links

Forum and Maker Chat
Discuss and debate MakerDAO.

Public Calander
Subscribe for all public calls, votes, and other reminders.

Participation Tools
Library of useful links for Stakeholders; Protocol analytics, Dai analytics, collateral & liquidation metrics, governance history, and auction data.

Governance Portal
Voting dashboard for MKR voters.

MIPs Portal
MIPs Dashboard for everyone.

Learning Portal and Technical Documentation Portal
Learn more about the Maker protocol.

Have Feedback?

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Disclaimer: This update is assembled by a group of contributing members in the MakerDAO community. This does and should not serve as financial advice or an inducement to vote in any specific way. This update is purely for information and communication purposes only.


I take this opportunity to campaign for capybaras!

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